Situation: A six-month post-merger integration initiative was launched to assist a Turkish manufacturing facility with the setting and implementing of a full-potential strategy initiative.
Complication: The facility was under pressure to launch a new production line that would enable it to secure long-term contracts and enhance sales. However, the facility required a full review of its current practices to ensure optimal operations and cost control.
Approach: Four major improvements areas were launched:
- Cost optimization assessment: Covered raw material sourcing strategy, production process mapping, and tracking of all operational and overhead cost linked to production
- Sales channels review: Full evaluation of opportunities in the local and export markets, competitive price bench-marking, review of incentive scheme, and sales channel assessment
- Cash management and leverage improvement: Detail assessment and review of receivables and inventory management policies and renegotiation of debt and reducing bank exposure
- Regulatory and tax review: Institute governance and periodic reviews of all regulatory licensing and tax provisional accounts
Results: Since the launch of the initiative, a full KPI model was developed to monitor the operations of the facility. Implemented initiatives resulted in improving net margins threefold.